Shopify Payments is exclusively a low-risk payment processor and does not support high-risk merchants
High-risk businesses must use third-party payment processors that integrate with Shopify via payment gateways
A high-risk payment processor is a third-party payment service provider that specializes in processing transactions for businesses in industries with elevated chargeback rates, regulatory scrutiny, or reputational risk
Integration requires setting up a compatible payment gateway that connects your merchant account to your Shopify store :::
When it comes to online payments with Shopify as a high-risk merchant, it's important to know that you'll need to work with third-party payment processors. That's because Shopify doesn't offer high-risk payment processing directly, but it does integrate with third-party companies that can provide you with the payment services you need. If you're a high-risk company, you require a custom to accept payments for goods or services on Shopify.
The best Shopify high-risk merchant account provider offers low rates, fast integrations, and helpful customer support. They'll get you set up and process payments quickly. If you're just starting a new store or adding new items to an existing store, check the rules and regulations that go along with your account. Your current payment processor may not be able to work with your Shopify e-commerce store. If that's the case, you won't be able to process payments on Shopify when someone makes a purchase.
Shopify Payments vs. Payment Aggregators vs. High-Risk Processors
Feature
Shopify Payments
Payment Aggregators (PayPal, Square)
Dedicated High-Risk Processors
Risk Tolerance
Low-risk only
Low to moderate risk
High-risk industries accepted
Fee Structure
Flat rate based on plan
Graduated rates, per-transaction fees
Custom rates based on risk profile and volume
Approval Requirements
Basic business verficiation
Quick sign-up, minimal documentation
Detailed application, business documentation required
Industry Restrictions
Extensive prohibited list
Many high-risk industries excluded
Specializes in restricted industries
Approval Timeframe
Instnat
1-3 days
Typically 3-14 business days
You might also consider working with payment aggregators. Although their straightforward sign-up process can seem like an easy way to find a payment processor for Shopify, there are some drawbacks to partnering with a payment aggregator. The primary issue is that many refuse to work with high-risk industries. Additionally, they often have a fee structure with graduated rates rather than being based on sales volume.
What To Do If Your Shopify Merchant Account Is Put on Hold?
If your Shopify merchant account is placed on hold, it can significantly disrupt your business operations. Follow these steps to resolve the issue and resume payment processing:
Review Shopify's NotificationShopify typically sends an email explaining why your account is on hold. Carefully read the notification to understand the specific issue, whether it's related to chargebacks, policy violations, or required documentation.
Contact Shopify SupportReach out to Shopify's support team for further clarification. Their assistance can provide insights into what is needed to resolve the hold, whether it's additional documents or adjustments to your store's operations.
Provide Required DocumentationIf Shopify requests specific documents—such as proof of business registration, inventory invoices, or identification—submit them promptly to demonstrate compliance.
Audit Your Store for ComplianceEnsure your store adheres to Shopify's terms of service. Remove any prohibited products, review refund policies, and ensure accurate product descriptions to avoid future issues. Unfortunately, if you fall under the high-risk Shopify merchants list, you'll need a different payment processor.
Consider Alternative Payment ProcessorsIf the issue persists or you face extended delays, explore high-risk payment processors like those offered by Zen Payments. These solutions are tailored for businesses in high-risk industries, ensuring smoother payment processing while maintaining compliance.
Taking these steps not only resolves the immediate issue but also minimizes the chances of future holds on your Shopify merchant account.
Shopify Terms and Conditions Prohibits Many High-Risk Merchants
Shopify has an extensive agreement regarding merchant account legalities. You can learn about the specifics of online payment processing on their Terms and Conditions Page. Moreover, they list Prohibited Businesses explicitly. These entail multiple industries, and the ones they mention are not exhaustive.
Why Is My Shopify Merchant Account Considered High Risk?
Your merchant account is considered high risk when payment processors determine that your business presents elevated liability due to factors such as chargeback history, credit profile, or industry classification. These reasons include higher levels of chargebacks, lower credit scores, and regulated industries.
Chargeback Rates – Your chargeback rate is determined by the number of chargebacks customers request from their bank. Most payment processors don't want to see your rates exceed 1%, which is the industry-standard threshold, because it causes added work on their end. In addition, high chargeback rates affect your bottom line. When a chargeback occurs, the money is taken directly from your merchant account.
Refunds can also hurt your company and high refund rates are seen as a precursor to chargebacks. If you notice many people returning your products, be sure to create a process where you can monitor what's causing those issues and prevent them from occurring.
Credit Scores – If you have a low credit score and want to start a business, you may face higher reserve rates on your account. This is because your merchant account provider wants to hedge risk when it comes to opening an account for your business operation. On the plus side, many providers will give you the processing solution you need if your credit score is within a reasonable range.
Regulated Industries – As mentioned above there is a long list of regulated industries such as CBD , Adult, Firearms and more. A good rule of thumb is that if you sell products that have an age requirement or could be considered harmful to consumers, you are probably in a high-risk industry and need a high-risk merchant account from an established provider.
High-risk merchant accounts are available through third party payment processors if you want to remain on Shopify, or separate from Shopify altogether.
Shopify Payments Prohibited Businesses Include:
Shopify Payments maintains a list of business types that are not eligible for their payment processing services. The various high-risk industries they don't work with include:
Monetary Services
Law Firms
Cryptocurrency
Credit Services
Adult Content
Branded Goods without Proper Sales Licenses
Gambling
Gaming and Video Game Betting
Casino
Regulated Products
Nutraceuticals
Social Media Follows
Drug or Medical Items
Get Rich Quick
Ponzi Schemes
Pyramid Schemes
Mugshot publication
Subscription box services with recurring billing
Travel agencies and booking services
Tech support and remote access services
If you have an online business, Shopify Payments could be a good option, but only if you meet certain conditions. Shopify Payments is exclusively a low-risk payment processor. This means they only work with select types of businesses. High-risk businesses have to seek out a third-party payment processor in order to accept credit card payments. Depending on the industry you're in, there are different qualifications you have to meet to apply for a merchant account.
For example, if Shopify drops your payment processing because you have an adult site, you'll have to contact a payment processor who works directly with that vertical. There are many kinds of adult sites, from streaming and video to books and toys, and every business type has its own MCC code and regulations.
How To Set Up a High-Risk Payment Gateway on Shopify
A high-risk gateway on Shopify is a tool that connects directly to your merchant account and will allow you to process Shopify payments. Follow these steps to integrate a high-risk payment gateway with your Shopify store:
Apply for a high-risk merchant account – Submit your application with required business documentation to a high-risk payment processor
Get approved and receive credentials – Once approved (typically 3-14 business days), you'll receive your merchant account details and gateway credentials
Select a compatible payment gateway – Choose a gateway that integrates with Shopify; many high-risk processors provide their own gateway solution
Access Shopify payment settings – Navigate to Settings > Payments in your Shopify admin dashboard
Add the third-party provider – Select "Third-party providers" and search for your gateway or choose "Manual payment method"
Enter gateway credentials – Input the API keys or code provided by your payment processor
Configure settings and test – Set up fraud filters, currency options, and run test transactions to verify the integration
Go live – Once testing is complete, activate the gateway to begin accepting payments
If you have any installation issues, be sure to contact support. Often, they have teams dedicated to the tech side of their payment products.
Once you've completed the setup process, you'll be ready to start accepting payments. Find a high-risk payment provider with excellent customer service to get up and running smoothly.
Work With Zen Payments as Your High-Risk Payment Service Provider For Shopify
Not all high-risk payment processors are created equal. Zen Payments specializes in high-risk payment processing and offers third-party payment processing services for Shopify merchants. We create custom business solutions that fit your business model. We'll help you with everything from Shopify payments to setting up a high-risk payment gateway and payment processing. We also offer ACH payments and various payment methods to ensure we meet your company's needs.
Josh Phelps is an experienced sales professional with eight years of expertise, including four years in payment processing. Throughout his career, Josh has successfully secured approvals for thousands of businesses, demonstrating his skill in navigating and optimizing the payment processing landscape.
Our merchant service specialists are the best in the business and will work with you from start to finish to get your account approved!
High Approval Rates
Expansive Network of Banks
Versatile Solutions
Quick Approvals
Frequently Asked Questions
No, Shopify Payments is exclusively for low-risk merchants. High-risk businesses must use a third-party payment processor that integrates with Shopify through a compatible payment gateway.
If Shopify terminates your payment processing, you can still operate your Shopify store by integrating a third-party high-risk payment processor. Your storefront remains functional; only the payment method changes.
Apply for a high-risk merchant account, get approved, then integrate the provided payment gateway through Shopify's third-party payment settings by entering your API credentials.
High-risk processing fees typically range from 3% to 6% per transaction plus per-transaction fees, depending on your industry, chargeback history, and processing volume.
Approval typically takes 3-14 business days, depending on the complexity of your business and the completeness of your application documentation.
